According the Coase Theorem, the private sector can achieve social efficiency if the government:
a. establishes and enforces property rights.
b. imposes taxes to serve as proxies for external costs.
c. set rigorous environmental standards.
d. encourages competition with antitrust laws.
a
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Suppose nominal GDP is $14 trillion and the money supply is $2 trillion. What is the velocity of money?
A) 0.143 B) 7 C) 12 D) 28
In a monopolistic competitive industry, how does a small appliance firm differentiate its products by emphasizing intangible aspects?
a. By offering a money-back guarantee b. By selling products through major retailers c. By offering products in multiple colors d. By offering discounts on new models
Which of the following is the primary source of cross-country differences in the real earnings of workers?
a. differences in natural resource endowments b. differences in output per worker c. differences in the average number of hours worked d. differences in the share of workers that are members of a labor union e. access to modern technology
The natural rate of employment
a. will change with changes in the long run aggregate supply curve. b. will be a level such that the expected real wage equals the actual real wage. c. will be at a level where the actual and expected price levels are equal. d. both a and c. e. all of the above.